Ameritrade Announces Initial Reorganization Results; Company Also Amends Revolving Credit Agreement.Business Editors OMAHA Omaha, city, United States Omaha (ō`məhä, –hô), city (1990 pop. 335,795), seat of Douglas co., E Nebr., on the west bank of the Missouri River; inc. 1857. , Neb.--(BUSINESS WIRE)--Sept. 19, 2001 Ameritrade Holding Corporation (Nasdaq:AMTD AMTD Arithmetic Mean Temperature Difference AMTD Automatic Magnetic Tape Distribution AMTD Affordability and Manufacturing Technology Demonstration ) today announced that as a result of its recently announced reorganization, it will be consolidating facilities to further streamline operations. Ameritrade will record a non-recurring charge of approximately $30 million in its September quarter. The charge consists primarily of future lease payments in several facilities and related furniture and equipment. The Company expects these steps to increase operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. by approximately $14 million for the 2002 fiscal year. As part of Ameritrade's reorganization in June 2001, the Company announced it would combine its many subsidiaries, products and resources into one team, one brand with two business units, and a singular SINGULAR, construction. In grammar the singular is used to express only one, not plural. Johnson. 2. In law, the singular frequently includes the plural. vision for enabling a diverse client base to achieve their financial goals. "The added competitive advantage gleaned from our reorganization is the direct result of eliminating redundancies throughout Ameritrade," said Joe Moglia Joe Moglia is the current CEO of TD Ameritrade, the largest online discount brokerage firm in the world. Born in Queens, New York, Moglia was a football coach for 16 years, finishing as a Dartmouth College assistant from 1981-1983. , chief executive officer of Ameritrade Holding Corporation. "By consolidating our operations, we become a far more agile organization, strengthening our overall profitability and operational performance to seize growth opportunities." Revolving Credit Agreement Revolving credit agreement A legal commitment in which a bank promises to lend a customer up to a specified maximum amount during a specified period. revolving credit agreement See line of credit. The Company intends to renegotiate re·ne·go·ti·ate tr.v. re·ne·go·ti·at·ed, re·ne·go·ti·at·ing, re·ne·go·ti·ates 1. To negotiate anew. 2. To revise the terms of (a contract) so as to limit or regain excess profits gained by the contractor. and extend its revolving credit agreement within the next 90 days because it currently expires December 31, 2001. In conjunction with the non-recurring charge, it was necessary to amend the revolving credit agreement. The amended agreement allows the Company to incur up to a $25 million pre-tax loss for the September quarter. It also allows for maximum borrowings of $35 million through the maturity of the agreement. The interest rate on the revolving credit agreement will increase by 25 basis points. As of September 18, 2001, the Company had $22.5 million outstanding on the revolving credit agreement. Outlook Ameritrade has updated its current projections for the Company's main business drivers in the Investor Relations Investor relations The process by which the corporation communicates with its investors. "Outlook" section of its corporate website located at www.amtd.com. About Ameritrade Holding Corporation Ameritrade Holding Corporation (www.amtd.com) is a pioneer in the online brokerage industry with a 26-year history of providing clients a self-directed approach to investment services. The award-winning Company, through its Private Client and Institutional Client divisions, provides tiered levels of brokerage products and services tailored to meet the varying investing, trading and execution needs of self-directed individual investors, financial institutions and corporations. |
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